Defence stocks in focus: All eyes on Mazagon Dock, HAL, BEL, Bharat Dynamics, BEML after Rs 2.12-lakh-crore DAC approval

Defence Stocks in Focus: Defence stocks are expected to remain in focus on Tuesday, October 27, after the Defence Acquisition Council (DAC) approved military equipment procurement proposals worth approximately Rs 2.12 lakh crore.

The DAC also highlighted that around 82 per cent of the total procurement value, amounting to Rs 1.73 lakh crore, is mandated to be sourced from the domestic industry. The move is expected to support India's indigenous defence manufacturing ecosystem and the government's 'Make in India' initiative.

The Nifty India Defence index, which tracks the performance of leading defence stocks listed on the National Stock Exchange (NSE), settled 1.2 per cent higher at 8,661.95 in the previous trading session.

The DAC has granted Acceptance of Necessity (AoN) for 16 defence procurement programmes worth Rs 2.12 lakh crore. Of the total amount, Rs 1.73 lakh crore is mandated to be sourced from Indian companies.

Among the major procurement programmes, Next-Generation Destroyers account for Rs 75,000 crore, while Air Defence Systems have been allocated Rs 31,500 crore. The approvals also include Light Multi-Role Helicopters and Special Utility Helicopters, with their combined value exceeding Rs 41,000 crore.

The substantial procurement outlay and emphasis on domestic sourcing put India's defence manufacturing sector in focus, with investors tracking potential opportunities for domestic defence companies.

(Disclaimer: The above article is meant for informational purposes only, and should not be considered as any investment advice. ET NOW DIGITAL suggests its readers/audience to consult their financial advisors before making any money-related decisions.)